real-time news and commentary for investors
Wednesday, Aug 14
Government needs those behind mortgage mess to fix it
- A former Bank of America mortgage executive who is a defendant in an FHFA lawsuit over MBS and named in a DOJ lawsuit is now plying his trade for Fannie Mae (FNMA.OB).
- "There aren't that many people out there with expertise that don't have a potentially tainted background," says one lawyer. "It's consistent with their policy that they no longer prosecute elite bankers," says William Black, who helped clean up the S&L crisis 20 years ago. Executives "can go next door and ever walk into an entity that is supervised and owned by the U.S. government."